The Swiss-based investment house intends to drop wealthy private clients in Hong Kong in favor of other businesses, information received by finews.asia indicates.
Vontobel is concentrating its regional wealth management activities on financial intermediaries, such as external asset managers, banks, and family offices, and will no longer serve wealthy private clients in Hong Kong, according to information obtained exclusively by finews.asia and confirmed by the investment manager.
LGT Client Offer
The private clients booked in Hong Kong are currently being informed of the development. They will be given the possibility of transferring their relationship to Liechtenstein-based LGT, the research indicates.
LGT currently has a full banking license and a booking center in Hong Kong. It has been present in the city since 1986 and has extensive experience managing regional private clients with services that include traditional private banking and a range of financial solutions.
Potential Employee Transfer
The transfer likely involves a triple-digit million US dollar sum in client assets under management, the research shows. About six Vontobel employees are affected by the step and LGT is currently evaluating whether they should be moved over as well, a spokesperson for the latter institute told finews.asia.
Vontobel launched a private client business in Hong Kong eight years ago, at a relatively late juncture, as finews.asia previously reported. Ostensibly, the business did not manage to achieve the necessary critical mass for a sustainable franchise.
High Expectations
Alex Fung, who was responsible for starting and building the business from inception, will remain in his function to ensure a seamless client transition to LGT. It is as yet unclear what will happen to him afterward.
Vontobel originally targeted the acquisition of $3 billion in private client assets, something it was apparently unable to achieve given the current decision to phase the business out.
Doubling of Employees
In the future, Vontobel's asset management activities will play a key role in its regional growth ambitions besides the wealth management business.
«We have significantly strengthened our asset management service offering in the region and have more than doubled the number of our employees in Asia over the last five years to 60, of which many are financial analysts,» a Vontobel spokesperson said.
Expansion in Tokyo
Vontobel Asset Management opened an office in Tokyo in 2021, strengthening the team with Eiji Tsuji (pictured above), who joined in July from Man Group. According to an internal memo sighted by finews.asia, he has more than 30 years of experience and an «excellent» client network in Japan.
«Fundamentally, in the changing world, we will place our focus even more strongly than before on established markets,» the Vontobel spokesperson indicated.
